In one of the biggest shopping centre investment deals ever, the Mall fund has bought three centres from clients of REIT Asset Management for£378.5 million.
The three properties in Blackburn, Lancashire, Maidstone, Kent, and Middlesbrough, Cleveland will produce an initial yield of 5.7 per cent and an equivalent yield of 6.5 per cent.
In Maidstone, the Mall fund has bought the 500,000 sq ft (46,450 sq m) Chequers Shopping Centre.
The scheme has more than 80 stores over three floors, including Bhs, TJ Hughes, Next, Wilkinson, Boots and Dixons. It also has more than 800 parking spaces.
The 400,000 sq ft (37,160 sq m) Cleveland Centre in Middlesbrough has 85 stores, including Littlewoods, Boots, WHSmith and HMV, as well as 500 parking spaces.
The 535,000 sq ft (49,700 sq m) Blackburn shopping centre has more than 110 shops, including Boots, Argos, Debenhams, Bhs, Woolworths, and WHSmith, together with about 1,000 parking spaces.
The deal means that the Mall fund - managed by Capital & Regional and Morley Fund Management - will own 21 centres, worth£1.98 billion, providing more than 7 million sq ft (650,300 sq m) of retail floorspace. Only the Prudential owns more UK shopping centres, and only Capital Shopping Centres manages more shopping centre floorspace.
The Mall chief executive Ken Ford said: 'We are delighted to acquire, off the market, a further three centres that comply with our investment criteria - dominant covered centres in loyal catchments, with significant operational and added- value potential.'
Strutt & Parker & CBRE advised the Mall. Franc Warwick represented REIT Asset Management.
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